Pay day loans and late fees in BC, Canada.?
There have been recent changes in BC legislation regarding pay day loans. How does this affect late fees? If a borrower is one day late, they charge either $150.00 or $250.00 right off the bat. Does this fee give the borrower the option of being late with the original loan and for how long? If not, does the lender haul people straight off to court? What if the recipient is on welfare or disability? Or has children? Also are there consumer protection agencies in Canada who can shed light on how these companies work?
December 14th, 2010 at 5:25 am
Don’t! make a Pay Day Loan
They are the biggest rip off around. I would rather go a few days hungry than to get myself into that kind of dept. Who in there right mind would take a lone with 1400% interest is beyond me.
It’s not unusual for a typical payday loan to have interest rates between 300% and 700%. That’s a far cry from the 15% to 20% interest you may be paying on your credit card. The sad thing is that payday lenders aren’t required to disclose their interest rates in states where their lobby has bought off legislators.